Should You Fix Your Mortgage Before the budget?

Even after providing a sneak-preview of what sheS likely to announce in her Budget, the whole country is still nervously awaiting Rachel Reeves’ statement later this month. And no group will be on the edge of their seats more than those looking to get their foot on the property ladder, or those considering a new mortgage.

The question ‘should I fix my mortgage before the Budget’ is one I’m being asked on an almost daily basis right now.

Sadly, as with many things in the housing market, there’s no easy answer to this. The upcoming Budget could lead to rising borrowing costs due to higher government borrowing and risk in financial markets. Lenders may adjust fixed mortgage rates in anticipation of market movements.

So locking in now will deliver certainty. By fixing now you will be protected from potential rate increases and you will at least know how much to put away each month. If rates fall later, you may still have options to remortgage or switch, though do bear in mind there could be costs.

If your current deal is expiring soon then borrowers whose fixed rate or tracker deal ends soon could face much higher variable rates if they wait. This also makes fixing a potentially good option.